I have to admit that my wife tripped me up on the topic of early payoff vs investing.
Background: We've got a 3.5% 30 year mortgage and I refuse to pay more than the minimum payment each month because it isn't hard to beat that rate in the stock market. My wife, on the other hand, despises debt and wants to pay everything off as quickly as possible.
I was trying to explain the math to her and she threw it right back in my face and said, "If you can make so much more in the stock market, why don't you pull out all of the equity you can an invest it all?" I found myself in a position where logically, I agree with her, but I just can't swallow the idea of pulling out the equity that I've built up.
Do any of you actually follow the math and take the equity out of your home to invest?
Background: We've got a 3.5% 30 year mortgage and I refuse to pay more than the minimum payment each month because it isn't hard to beat that rate in the stock market. My wife, on the other hand, despises debt and wants to pay everything off as quickly as possible.
I was trying to explain the math to her and she threw it right back in my face and said, "If you can make so much more in the stock market, why don't you pull out all of the equity you can an invest it all?" I found myself in a position where logically, I agree with her, but I just can't swallow the idea of pulling out the equity that I've built up.
Do any of you actually follow the math and take the equity out of your home to invest?